Thailand Takes Action Against Cheap Chinese Imports to Protect Local Economy

Thailand is establishing a task force to enforce regulations against cheap Chinese imports, shielding the weakened manufacturing sector. With factory closures and threats to local businesses, the Thai economy, expected to grow 2.6%, faces challenges despite measures like increased inspections and a new value-added tax. Discussions with China are ongoing.

Thailand is set to establish a task force to rigorously enforce existing regulations aimed at curbing the influx of cheap Chinese imports that threaten the manufacturing sector and the already struggling economy, a minister announced on Wednesday.

This initiative follows alarms that numerous Thai businesses might not survive the so-called 'tsunami of cheap Chinese goods,' which has led to nearly 2,000 factory closures in the past year. Although the Thai economy is projected to grow by 2.6% due to tourism and exports, the manufacturing sector remains a significant drag, with factory output down 2.01% in the first half of 2024 compared to the previous year.

The task force will include 28 government agencies and plans to meet every two weeks to review and revise regulations to prevent the distribution of illegal goods, stated Caretaker Commerce Minister Phumtham Wechayachai. Other actions include increasing controlled goods under various laws and boosting random container inspections. Concerns have also risen due to the July launch of Chinese e-commerce firm TEMU, prompting the Thai government to discuss compliance issues with the Chinese embassy. Former Prime Minister Thaksin Shinawatra has called for 'small steps of protectionism,' echoing public concern.

(With inputs from agencies.)